Everybody’s a Precious Metals Bear, So … Gold and Silver Prices Surge

By Brendan Conway

The dollar is down on the day. Gold’s price tends to benefit when that happens. But beyond that there’s a dearth of explanations except, well, It’s time.

Associated Press

Dow Jones Newswires’ headline is “*DJ Gold Rockets Up $20 As Bearish Traders Grow Nervous.” It’s a cousin of the old “Stocks fell because of selling pressure.” It’s never wrong, it’s not very satisfying, and it’s utterly believable after a 27% YTD selloff.

From DJN’s Tatyana Shumsky, covering the 2.2% rise in gold futures and 4.1% in silver:

“It almost seems too easy to get short gold right now,” said Adam Klopfenstein, a senior market strategist with Archer Financial Services LLC.

But on Wednesday, the widespread bets on lower gold prices backfired. An updraft on the back of a lackluster dollar swiftly escalated into a rally, which caused more traders to try to limit losses on bearish wagers.

“People are just being cautious,” said Bob Haberkorn, a senior commodities broker with RJO Futures.

It’s no reversal of the Federal Reserve “taper” worry. Bonds are down today. The yield on the 10-year Treasury is up to 2.84%.

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There are 4 comments

DECEMBER 4, 2013 2:16 P.M.

dave wrote:

Maybe someone noticed that the Chinese said they no longer plan on buying treasuries. The mainstream media seems to ignore this, but the fact is that if the fed is the only one buying treasuries, the dollar should continue to decline. Maybe someone realized that the fed is bluffing just like they have done for years now, and there is no end to qe, and no taper. There are really quite a few reasons for gold to go up, and keep going.

DECEMBER 4, 2013 2:20 P.M.

Bidu Bay wrote:

It's just a dead cat bounce.

DECEMBER 4, 2013 2:30 P.M.

BoulderDash wrote:

Yes but what the heck happened at exactly 12:10 pm to turn gold around and the miners so quickly? All the data points to a strengthening economy and gold had fallen overnight, bumped up a bit, and was back down before noon. Why at exactly 12:10pm did it jump up by 2% in a matter of minutes?

DECEMBER 4, 2013 4:36 P.M.

OneTinSoldier66 wrote:

In 1993 Franklin D. Roosevelt used a dictatorial executive order to make the money that was in use at time in America, illegal for American's to use. He outlawed money itself so that he and his International Banking Cartel buddies could profit. Same for Richard M. Nixon in 1971, only on an International Scale since it had already been done in America.

Libor should not be called a "scandal". It should be called what it is, a crime. And Quantitative Easing is just free money by fiat for crooks on a never ending basis.

A few years ago people like me predicted that Central Banks of the developed world would start printing up money out of thin air. People such as myself predicted that The Fed would never "taper". Most people just laughed, ignored, or persecuted and demonized us. Same could be said for Meredith Whitney who predicted that hundreds of municipalities would face bankruptcy, as I look over and see an article titled, "More Municipalities Face Downgrades, Junk Ratings." How much more money has to be printed up out of thin air(counterfeiting) for Bankers, and how many more and Stockton's and Detroit's need to happen?

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